Apparently We Are All Confused And Killing Net Neutrality Will Be Just GREAT For Startups
from the Godzilla-was-simply-misunderstood dept
What if I told you that the ham-fisted attempts by giant telecom corporations to abuse their gatekeeper positions anti-competitively are actually great for startups and consumers? Yes, I'd slap me too. Still, this appears to be the central thesis of a new Wired editorial by TechFreedom's Berin Szoka and George Mason University’s Mercatus Center's Brent Skorup, who insist that killing off net neutrality is just what Internet underdogs need. According to Szoka and Skorup, what you think of as entrenched legacy bullies taking every opportunity to play dirty is really just a "two-sided market" at play (like adorable puppies in a meadow!):"Everyone assumes that cable companies have all the market power, and so of course a bigger cable company means disaster. But content owners may be the real heavyweights here: It was Netflix that withheld high-quality streaming from Time Warner Cable customers last year, not vice versa. As WIRED recently noted, “Netflix is hardly without leverage” (Time Warner lost over 300,000 subscribers). Similarly, it was ESPN that first proposed to subsidize its mobile viewers’ data usage last year."There's some half-truths and falsehoods in that statement used for effect. One, Netflix's Open Connect Content Delivery Network is free for any ISP to join, and will speed up Netflix streaming by hosting Netflix caching servers on the ISP network. Netflix ranks ISPs by streaming performance, and while Netflix does "name and shame" ISPs in the hopes they'll join their CDN, joining is free and it benefits all parties involved.
Time Warner Cable (who chose not to join, like Comcast and Verizon) did try to feebly argue this was a neutrality violation, but Netflix responded by making Super HD streams (previously only available for CDN partners) available for all ISPs. It's also worth noting Time Warner Cable lost 300,000 subscribers because of their retransmission feud with broadcasting giant CBS and the resulting blackout, not because of imaginary Netflix "leverage."
As for ESPN being the one who came up with sponsored data, they're simply wrong; AT&T was the first to propose the idea of charging content companies in order to bypass user bandwidth caps (first pitched as "1-800 data" or "free shipping" a few years back). Verizon liked the idea, and ESPN being ESPN, was the first company with enough cash and cold ambition to think this was a good idea. The biggest problem with AT&T's Sponsored Data is that while ESPN might be able to pay to play, smaller startups and businesses can't -- creating an unlevel playing field where one didn't exist formerly. The editorial somehow forgets to discuss that angle of AT&T's awful idea.
By artificially inflating content company leverage and intentionally under-selling incumbent ISP power, Szoka and Skorup try to pretend that what we're actually seeing at play here isn't an entrenched TV and broadband industry (with a long history of anti-competitive behavior) fighting a disruptive new streaming Internet video industry, it's a healthy "two-sided" market relationship where incumbents are just doing an awesome job innovating:
"ISPs and carriers like AT&T, Comcast, and Verizon face what economists call a “two-sided market.” In this case, they — and other tech firms — can receive revenue from two major sources: content providers (through sponsorship or ads), and consumers (through subscription fees). While TV broadcasters traditionally relied almost entirely on the former, cable programmers like HBO and Showtime rely almost entirely on the latter. But most technology firms use a combination of both ad support and subscription fees. So it makes sense for AT&T, Comcast, Verizon, and others to do what most media firms (and that includes app creators) do: develop a balanced revenue stream from both the content side and the customer side to ensure profitability while making the service affordable."That's a leap. Consumers pay for bandwidth. Content companies pay for bandwidth. Wireless carriers already profit handsomely on both ends and across the middle. What sponsored data and arbitrary usage caps do is allow the wireless carriers to charge yet another "troll toll" for wireless bandwidth already paid for. They get away with this double dipping because they enjoy regulatory capture and abuse their market position while regulators nap, not because of healthy markets. But in Szoka and Skorup's world, you're asking for trouble if you dare question telecom companies' motives for double dipping:
"...we also need to ensure content providers don’t undermine incentives to invest in the capacity they themselves need — or block the business model experimentation that may be needed to drive that capacity."This idea that if you don't let telecom companies experiment with predatory pricing we'll face capacity and investment problems has been a cornerstone of sloppy telco logic for a decade. It's at the heart of the repeatedly debunked exaflood argument, and while Szoka and Skorup do yeoman's work trying to sell it as sound new theory, all they've really done is put some lipstick on a dead horse and given it a swift kick. It's a manufactured and frankly odd defense of predatory incumbent pricing practices that the pair claim will "bring down the cost of services for consumers" (protip: that hasn't happened, doesn't happen, and will not happen).
I'm all for honest debate on competitive markets, but a recent bout of painfully un-nuanced Wired editorials featuring Szoka seem more like Colbert-esque satire than honest discussion. Whether it's pretending that an FCC with a history of apathy, incompetence and deregulatory tendencies is a bigger threat than predatory monopolies or the insistence that incumbent ISPs are faultless for any part of the country's broadband competition problems, you'll notice one common refrain: the nation's giant telecom companies can do no wrong and it's always somebody else that's to blame. If Wired's recent editorial selections really are intended to be satire making fun of the nation's phone and cable companies, then I must say it's excellent, amazing work on Wired's part.
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Filed Under: berin szoka, brent skorup, broadband, net neutrality, startup
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As far as "honest debate" goes, Szoka and friends' recent articles have about as much credibility with me as articles from PRWeb. Although, at least with the Wired articles there is a little disclosure notice on TechFreedom's funding.
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FCC or FTC
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Re: FCC or FTC
Google Fiber might never have happened had the Bush DOJ not pushed against such requirements. Today, Google Fiber uses a "neighborhood rally" to determine whether there is sufficient demand in a neighborhood to merit building out to homes there initially. But they install the hardware everywhere, so they can built out those connections in the future, and they make special efforts to drum up interest in minority and poor neighborhoods.
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Now, of course, AT&T wants to leverage this into various kinds of commercial monopolies, up to and including groceries, and that's something different.
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David E. Nye, Electrifying America: Social Meanings of a New Technology, 1880-1940, MIT Press, Cambridge, Ma., 1990.
One of the points Nye makes is that there was a distinction between an American pattern of electrification, which tended to stress "gee-whiz" projects, and a European pattern, which tended to stress electricity for indivual houses at the earliest possible date. In Europeaan terms of reference, what matters is to raise the minimum standard of access, to say that everyone gets the first megabit for, say, fifteen dollars a month, rather than to try to dream up gigabit home uses.
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Re: Re: Re: Re: FCC or FTC
Let's pursue it a bit further.
Electricity is pretty much 'net-neutral.' It's sold in units having nothing to do with how it's used.
What would electricity sales look like if electricity was *not* net-neutral?
The supplier would be able to dictate different prices for different uses. If, for example, it wanted to encourage the use of Westinghouse refrigerators and discourage other refrigerator brands, it could manipulate electricity pricing by brand. It could even force refrigerator suppliers to pay a fee so that their products aren't disadvantaged.
Why didn't this happen when the electrical grid was rolled out? Simple. It would have cost too much in metering devices and meter reading, given the technology at the time.
And now it's sort of cemented in place. The public wouldn't be receptive to price manipulation intended to gouge more profits out of electrical device suppliers (and ultimately, of course, consumers).
That's where propaganda like the Wired article might one day find value to electricity monopolists. Once electrical devices are internet-connected, there's no need for crude meters or meter-readers. Usage data can be collected automatically. This *could* give electricity suppliers leverage to extract money from electrical device suppliers - but first they'd have to bamboozle the public with propaganda telling them all the ways it would supposedly advantage *them.*
All lies, of course.
Alas, well-funded think tanks exist whose sole purpose is to find ways to exploit monopoly powers. I suppose this is one area they'll get around to in time.
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To answer your question, no. We don't want to go through that business again. But if the 'internet of things' takes off, electricity suppliers *could* be in a position to determine which device is sucking how much power. Automatically, no meter readers required. And once they have that information, they *could* try to use their market power the same way Comcast wants to use its market power: to dictate terms to other market players who rely on their bandwidth.
It's called 'monopsony' in economics: where the market power of a monopoly enables it to dictate terms, not just to consumers, but to suppliers.
There is no conceivable way that the exercise of monopsony powers to enrich a monopolist is advantageous to either small startups or consumers.
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http://www.techdirt.com/articles/20090713/1916365532.shtml#c105
More seriously, as I see it, the endgame is nationalization and municipalization, and the argument is mostly about the price.
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'Everyone has a price, some are on the dollar menu'
Also, I wonder if they remembered to take off the price tag before sending him off to write crap like that?
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- OK, so AT&T proposed Sponsored Data before ESPN. I stand corrected. So what? Do you disagree that content owners may in fact have more market power, or that much of the market power often attributed to cable/broadband (for example, blaming them for higher cable bills) actually belongs to big programmers?
- Second, as for that "recent bout of painfully un-nuanced Wired editorials featuring Szoka seem more like Colbert-esque satire than honest discussion," which part of my piece with Geoff Manne explaining what the DC Circuit's Net Neutrality decision actually meant did you find un-nuanced? Was it the part where, unlike most knee-jerk libertarians, I didn't applaud the decision as a victory over regulation and another defeat for the FCC, but instead pointed out that the FCC actually won far more than it lost? Or the part where I pointed out that Section 706 could allow the FCC to regulate not merely Net neutrality but lots of other things I'm sure you'd hate, from mandating copyright enforcement to trying to "clean up the 'Net"? Did you find Harold Feld's concerns about 706 in Maggie Reardon's CNET piece similarly "un-nuanced?" Or did you actually read both, set aside your fixation on the need for a particular kind of Net neutrality regulation, and think for just a moment about the dangers of Section 706? Did you note that Geoff and I point out that the FCC can, consistent with the data roaming decision, regulate edge/ISP deals to make sure the terms are reasonable and non-discriminatory?
- For the record, I didn't chose the title of either piece and was annoyed at both. On the January piece, it's not actually true that the FCC "Lost on Net Neutrality," just as it's not true that anyone has "Killed Net Neutrality." Net neutrality lives on via Section 706.
- What kind of corporate shill for the cable industry would write, as I did in Wired last summer, that we should do everything we can to level the playing field so that companies like Google Fiber, CenturyLink, Sonic.Net and Verizon can build out competitive infrastructure? Did you actually read that piece? (I didn't choose that title either.)
- On this point, I will reiterate my work at TechFreedom, and before that at PFF, has been supported by both ISPs and edge providers, currently including Comcast, Verizon, AT&T, Google, Amazon, Facebook and Yahoo! I don't think any of them would continue to support our work if they found it "painfully un-nuanced."
- Give a listen to (or read the transcript of) my debate re the Cable - Time Warner cable merger on Diane Rehm on Monday and, please, let me know if anything I said there is inaccurate or un-nuanced. I'd love to know.
Again, thanks for being so gracious and nuanced. You, sir, are a scholar and a gentleman.
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I mention this for two reasons:
- Unlike Karl, I actually write "nuanced" legal analysis, such as pointing out that the FCC actually won, while other libertarians claimed -- truly without "nuance" that the decision was a loss for the FCC
- Unlike journalists, if I really wanted to sell out to corporate America, I could go back to a law firm and work for them as a client -- and make several times more money.
So, please, you my disagree with me, but let's not try to reduce this to the simplistic logic of "We disagree, therefore you must be insincere."
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So, please use what you learned there about economics and explain to us how telco's double dipping is somehow efficient and good for customers (and society).
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Was that the same nuanced analysis where you claimed that the FCC, an agency with a history of significant, consistent deregulation and fear of making any truly bold regulatory moves was on the cusp of going regulation mad and destroying the Internet?
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Haha, yeah - if that were true, the libertarians would receive a larger percentage of the vote.
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"So what" that you were wrong? BROADCASTERS have significant market power, but that's not entirely what you were arguing. You were trying to pretend smaller video streaming operators have equal leverage with giant companies like Comcast, which simply isn't true. I don't buy this "two-sided" market argument, sorry. It pretends there's no such thing as incumbent telecom network gatekeepers with long, rich histories of anti-competitive behavior, and it tries to pretend video streaming operators are much more powerful than they actually are.
"Second, as for that "recent bout of painfully un-nuanced Wired editorials featuring Szoka seem more like Colbert-esque satire than honest discussion," which part of my piece with Geoff Manne explaining what the DC Circuit's Net Neutrality decision actually meant did you find un-nuanced?"
How about the part, like all of your editorials, where incumbent giant broadband companies are infallible and completely blameless? Or the part where you pretend the FCC, which really has largely deregulated industry for more than two decades while doing nothing about key consumer issues, is a diabolical agency secretly planning to "over regulate?"
"Or did you actually read both, set aside your fixation on the need for a particular kind of Net neutrality regulation, and think for just a moment about the dangers of Section 706?"
Actually I don't have any fixation on a need for a "particular kind" of neutrality regs, because I think the FCC should focus on improving competition first and foremost. Yes, 706 is legally untenable, but you needn't worry -- what you're going to see Wheeler do is a set of cross-industry voluntary guidelines instead of real regulation because he knows this. Why is it do you think that AT&T isn't worried about any of this if the FCC really was a serious threat to "over regulate"? They'd be howling if your argument were true.
"For the record, I didn't chose the title of either piece and was annoyed at both. On the January piece, it's not actually true that the FCC "Lost on Net Neutrality," just as it's not true that anyone has "Killed Net Neutrality." Net neutrality lives on via Section 706."
I never complained about the titles, I complained about the errors within the stories and the stories themselves. Mainly the conflations and omissions, most of which you still haven't discussed or defended (like you ignore how AT&T Sponsored Data could create an unlevel playing field for wealthier content creators).
"What kind of corporate shill for the cable industry would write, as I did in Wired last summer, that we should do everything we can to level the playing field so that companies like Google Fiber, CenturyLink, Sonic.Net and Verizon can build out competitive infrastructure? Did you actually read that piece? (I didn't choose that title either.)"
I don't believe I called you a "corporate shill," so I can't comment there. :) And the editorial you reference was effectively blaming the lack of broadband competition ENTIRELY on local governments, which as someone who has written about the industry for more than a decade, I can tell you is unfounded.
"On this point, I will reiterate my work at TechFreedom, and before that at PFF, has been supported by both ISPs and edge providers, currently including Comcast, Verizon, AT&T, Google, Amazon, Facebook and Yahoo! I don't think any of them would continue to support our work if they found it "painfully un-nuanced."
I won't bother much with this unless you're willing to show us your books (you're not), but because you receive money from numerous industries doesn't mean much to me in terms of whether the money you DO get from broadband providers influences your editorials.
"Again, thanks for being so gracious and nuanced. You, sir, are a scholar and a gentleman."
You're welcome! Thanks for reading!
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Correct.
The only reason I can imagine that the article survived editorial review at Wired is the authors sponsored the article. Paid Wired handsomely to publish it. Which, if true, means the authors themselves were hired guns on behalf of the cable companies involved, Comcast and/or Time Warner. None of which was disclosed at publication.
Follow the money, journalists, and I think you may find some juicy dirt.
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Re: Correct.
But I will note that your assumption is perfectly consistent with how nearly everyone else seems to think about Net neutrality: "This doesn't feel right to me. There MUST be some evil corporate plot afoot."
In short: ready, fire, aim
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Just how independent was this journalism?
It doesn't *look* independent. It *looks* like shilling for the cable industry. How else should we take an argument that strengthening monopoly powers for the cable industry will actually benefit small startups on the net, an argument supported by irrelevancies having *nothing* to do with small startups? Netflix has tremendous market power, therefore all the small startups have market power? Sheesh.
Once again: if Comcast is handed more monopoly power, and if government fails to regulate its prices and activities, as so often is the case in the US with respect to monopolies, then it *will* exploit its market power to suck money from consumers and other net suppliers alike.
It's disturbing to me that a disingenuous front of pundits has arisen in recent years whose main purpose seems to be to encourage market monopolization, as if that were somehow a good thing for an economy. It's a good thing *only* for the monopolies in question. That's basic economics, which if anyone on this good Earth should understand, it's you, with your legal and economic educational background. But somehow, having gotten that wonderful education, you ignored all of that and became a champion for monopolies.
There is no justification to be found in economics for your advocacy. It's not merely a case of there being weak justification. There's *no* justification. So why are you advocating this way?
Who paid the bill for this piece?
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Re: Re: Correct.
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Open Connect is "free"
Berin needs no defending but this is, as you put it, a half-truth used for effect.
Open Connect is not free; it is "free." Ars spoke with Sandvine CTO and cofounder Don Bowman and this is what he and Jon Brodkin said about Open Connect:
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Re: Open Connect is "free"
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The Deficiencies of Lawyers' Calculations (to Brent Skorup, #10)
A five thousand watt electric service, at seven cents per kilowatt-hour, would come to about three thousand dollars a year. However, that is for an installation large enough that a carrier only has a hundred of them, that is, for an installation serving a good-sized city, something on the order of a million people. The pro-rata share of that electricity is on the order of a tenth of a cent per customer. Five thousand watts sounds like an impressive number to the naive, but it is rather less than the wiring of a typical apartment, or the output of a small motorcycle engine.
Such switch-rooms are often physically huge, as they were originally built for far more primitive equipment than is now used, such as electromechanical relays, and even the ancestral Strowger machines. The central switch-room for a city may be a couple of hundred feet wide, the size of a ballroom, and the suggestion that a forty-inch panel would be a gross encroachment is ludicrous. The probable annual rent of such space, say ten square feet, bearing in mind that it is not usable as retail space, and is probably windowless, might be somewhere in the low thousands. Again, when pro-rated out over the number of customers served, it again comes to a fraction of cent.
These figures are not exact of course, and are, no doubt, oversimplified, but they are correct in terms of orders of magnitude. We are talking about something which is cheap compared to the advertising postcards which the various telephone and cable companies send out. Even the cheapest kind of bulk-rate postage costs at least a couple of pennies per piece.
These are the kinds of points which would occur instinctively to the mind of an engineer, but of course Szoka and Skorup are not engineers-- they are merely lawyers. They are not, perhaps, capable of grasping the technical evidence which leads one to the conclusion that the telephone and cable companies are primarily interested in establishing monopolies.
http://en.wikipedia.org/wiki/Strowger_switch
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Re: The Deficiencies of Lawyers' Calculations (to Brent Skorup, #10)
http://www.techdirt.com/articles/20140206/06594726111/comcast-backed-lobbyist-insists-seattle- doesnt-want-faster-cheaper-broadband.shtml#c481
When a telecommunications company claims that it can only afford to offer one kind of high-speed service, and not another kind, the company is invariably being "economical with the truth."
What may have a certain plausibility, depending on circumstances, is the claim that the company cannot afford to provide any kind of high-speed service to certain remote locations, which have unusually long subscriber loops. There are places, notably in the rural South, where people don't have cable television at all, but get their video from satellite dishes instead, and the telephone company insists that it cannot do any kind of DSL. The present case is not such a case however. It is a dispute between two competing video-on-demand services, one of which belongs to the ISP.
Where will it stop? During the last month's bad weather, what with the difficulties of getting out (*), I telephoned the local pizza parlor, ordered pizza and salad for delivery, and then got them to stop at the local store and get me a large quantity of fruit juice as well. I don't suppose one of the big pizza chains would have agreed to do anything so unconventional, but this was a small business (not exactly "mom-and-pop," but more "bro-and-sis"). Does the telephone company think it can put a fifty or hundred percent surcharge on bottles of Apple, Orange, and Grape juice, just because they are ordered by telephone?
(*) An Alaskan archaeologist I once knew in graduate school, about the time that Mssrs. Szoka and Skorup must have been in the first grade or thereabouts, used to observe that in the Far North, people starve to death because they get "treed" by the weather, and they freeze to death when hunger drives them out into the open. A happy thought.
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Re: Re: The Deficiencies of Lawyers' Calculations (to Brent Skorup, #10)
Time Warner. Do they really think the public has the word "stupid" written across their foreheads?
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Re: The Deficiencies of Lawyers' Calculations (to Brent Skorup, #10)
And the problem, I presume, with ISPs providing space and electricity free to Netflix is that you will soon have a line out the door at hundreds of locations for every marginal content company who wants free interconnection. Since you've provided no justification for turning anyone away, the costs quickly add up.
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Re: Re: The Deficiencies of Lawyers' Calculations (to Brent Skorup, #10)
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Re: Re: The Deficiencies of Lawyers' Calculations (to Brent Skorup, #10)
This makes no sense whatsoever. That a company decides to engage in a sharing arrangement with Netflix in no way obligates them them to engage in similar arrangements with anybody else. They need no "justification" for turning anyone away. "We don't want to" is completely sufficient.
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Re: Open Connect is "free"
The article's core point was that some Netflix services were being "withheld," and that's not actually happening.
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Killing Net Neutrality Will Be Just GREAT For Startups
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Re: Killing Net Neutrality Will Be Just GREAT For Startups
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Net Neutralitly is a Fib
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AndroidciSite
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But still I don't have any idea for a startup
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gemini
Pantangan Makanan Untuk Penderita Maag Kronis
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gemana
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Obat Ambeien Tradisional
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Obat Maag Tradisional Paling Ampuh
Obat Maag Tradisional Paling Ampuh
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Obat Tradisional Hipotensi
Obat Tradisional Hipotensi
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Obat Penyakit Asam Lambung
Obat Penyakit Asam Lambung
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Prediksi Persib Bandung vs Pusamania Borneo FC 26 September 2015
Ini Prediksi Persib Bandung vs Pusamania Borneo FC 26 September 2015
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Obat Osteoarthritis
Obat Osteoarthritis
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Tips Mencegah Datangnya Penyakit Liver Sejak Dini
Tips Mencegah Datangnya Penyakit Liver Sejak Dini
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Tips Mencegah Datangnya Penyakit Dengan Bengkoang
Tips Mencegah Datangnya Penyakit Dengan Bengkoang
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Ganoool
Obat Maag Alami
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Obat Luka lambung
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Obat Wasir
Obat Wasir
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Obat Wasir Alami
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. By the way I want to know more about Open Connect Content Delivery Network. Keep writing for us. Thank you once again for raising your voice for such essential topics.
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obat asam lambung
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Obat Tumor Serviks
Obat Tumor Serviks
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Obat Tbc Paru Tradisional
Obat Tbc Paru Tradisional
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Best Portable Air Compressor
A portable air compressor is playing an important role in our daily life and especially for the vehicle owners. When you are traveling, you should keep an air compressor with you. Because you don’t know what will happen along the way. So, a portable air compressor should be one of the essential substance for your cars as well as your home.
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All In One Online Business Solution
Check out us at- http://gogetdigital.com/
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thanks
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Support for new startup
We need support for our new startup. It's an education site and free for all users. We want to release new versions for most popular languages. If you want to be our partner please contact us from the feedback page on our site.
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Have a nice day.
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Do you know? How to recover Yahoo account?
If your yahoo account has been hacked by someone & you are unable to recover hacked yahoo account, so don't worry about that you can contact yahoo customer care by dialling Yahoo Customer Support Number 1 855 777 5686
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I agree
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Cari Duit Online di Internet
We need support for our new startup. It's an education site and free for all users. We want to release new versions for most popular languages. If you want to be our partner please contact us from the feedback page on our site. http://www.cariduit.info/post-sitemap.xml
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Gejala dan Penyebab Penyakit Kanker Multiple Myeloma
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Hanz
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check casher
We the company founded in 1977 and started franchising since 1992, United Check Cashing and landed as a big <b><p><a href="http://www.unitedcheckcashing.com/">check casher</a></p></b> industry in USA. We are covering most of the cities and still giving you the best services within very short period with top notch satisfaction. We can trace us 24/7 and you are always welcome.
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Give Internet to everybody
Our country should provide internet in Low cost.
Check our this link - https://www.linkcue.com/plans/mumbai/
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obat darah tinggi alami dann aman
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obat tbc alami dan manjur
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obat bronkitis alami pada anak dan dewasa
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obat tbc kelenjar
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bahaya infeksi usus
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ciri ciri infeksi rahim
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ciri ciri infeksi pencernaan
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Obat Nyeri Sendi
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obat infeksi rahim
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obat maag kronis
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obat gondok
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obat sinusitis
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obat infeksi usus besar
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